In which of the following situations does investment spending increase?
a. A rise in interest rates
b. A decrease in interest rates
c. Government proposes to increase taxes on capital
d. A recession
b. A decrease in interest rates
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Gregory is considering attending a concert with a ticket price of $40. He estimates that the cost of driving to the concert and parking there will add an additional $20
In order to attend the concert, Gregory will have to take time off from his part-time job. He estimates that he will lose 5 hours at work, at a wage of $8 per hour. In terms of dollars, Gregory's opportunity cost of attending the concert equals A) $80. B) $100. C) $20. D) $60. E) $40.
Which of the following is not an option that could be used to save Social Security? a. Decreasing the age required for full-time benefits
b. Implementing means testing c. Allowing individuals to opt out of the Social Security system d. Increasing the return to Social Security funds
In the short-run, when output is zero,
A. fixed cost is zero. B. variable cost is zero. C. total cost is zero. D. All of the choices are correct.
Can a monopolist that can charge only one price maximize its profit at a quantity that is equal to the quantity produced if the industry were perfectly competitive?
A. No. Never, B. Yes, if the fixed costs are zero. C. Yes, if the marginal costs are zero. D. Yes, if the total costs are zero.